Unable to resize text using bounding box handles

Hi there, 

I am unable to resize or transform text using the bounding box handles/anchors. I used to be able to reshape text (such as stretching it taller or wider) using the bounding box. Now I can move it around, but can't reshape the text.

I can use the free transform tool, but what happened that it won't reshape automatically anymore?

I have tried hiding the bounding box and then showing it again, also resetting my preferences but no luck.

Thanks y'all! I appreciate your help.